Worldwide Fund Assets Hit $24.3T During Q207

November 14, 2007 (PLANSPONSOR.com) - Worldwide
mutual fund assets increased 6.7% to $24.32 trillion at the
end of the second quarter of 2007, according to the latest
data from the Investment Company Institute (ICI).

During the second quarter, the net cash flow to all
funds worldwide was $434 billion – the third
consecutive quarter net flows bested the
$400-billion mark, ICI said.

Long-term fund inflows were up slightly to $294
billion in the second quarter from $283 billion in prior
three-month period. Money market inflows stayed
“robust,” according to ICI, at $139
billion in the second quarter, compared to $134
billion in the first quarter of 2007.

Most reporting countries had a positive net cash
flow in the second quarter of 2007 and positive stock
market performance. However, in many countries, growth in
assets reported in U.S. dollars was boosted by
depreciation of the dollar, the ICI pointed out. For
example, European mutual fund assets figured on a
U.S.-dollar-denominated basis increased 5.8%, compared to
a 4.3%-increase on a Euro-denominated basis.

Meanwhile, on a U.S.-dollar-denominated basis,
asset levels increased in all investment categories.
Equity fund assets grew 8.1%, with $11.9 trillion in
assets at the close of the second quarter of 2007. Bond
funds were up 2.8%, and money market funds grew 5% in the
quarter. Assets of balanced/mixed funds increased 7.5% to
$2.4 trillion.

The ICI data showed net second-quarter flows to
bond funds increased substantially to $98 billion, up
from $69 billion in the first quarter of 2007. Net
inflows to bond funds were $65 billion in the Americas
and $15 billion in Europe in the second quarter, about in
line with their first-quarter pace. Most of the speeding
up of bond fund flows was attributable to the
Asia/Pacific region, which registered inflows of $17
billion in the second quarter after experiencing net
outflows of $7 billion in the first quarter.

Equity funds held the bulk of all worldwide
mutual fund assets (49%). Bond funds held 17% of
assets, and money market funds held 18%. Balanced/mixed
fund assets represented 10% of the total.